test
Strategic Advisory Excellence Since 1984
Executive Dashboard
Strategic Outlook 2026–2028
$3,000,000
Annual Gross Revenue
41.67%
EBITDA Margin
$3,125,000 - $3,750,000
Valuation Range
83.33%
Economic Profit%
1
No. of Equity Partners
$100/hr
Avg Client Rate ($/hr)
20
Total Employees
50%
Overhead as % of Revenue
Valuation-Based Strategic Position
Strengths, Weaknesses, Opportunities, Threats
Strengths
  • The firm generates $3.0 million of gross revenue with only one partner, which concentrates all reported revenue per partner at $3.0 million.
  • EBOC is 50%, indicating that half of gross revenue remains after expenses before owner compensation and taxes.
  • Revenue is diversified across audit, consulting, and tax, with each category representing 30% of revenue.
  • The firm produces 30,000 billable hours, providing a measurable operating base for the practice.
  • The staffing base of 20 employees supports the reported revenue and billable-hour volume.
Weaknesses
  • EBOC is 50%, which limits owner-level cash flow available to a buyer relative to top-tier CPA firm margins.
  • The firm has only one partner generating the full $3,000,000 of revenue, creating significant key-person dependence and succession risk.
  • The sole partner is age 78, which materially increases transition risk and may require near-term leadership replacement.
  • Revenue is evenly split across audit, tax, and consulting at 30% each, which can reduce strategic focus and makes the revenue mix less specialized than a more concentrated platform.
  • With 20 staff supporting $3,000,000 of revenue, the firm appears relatively small in scale, which can constrain operating leverage and buyer integration efficiency.
Opportunities
  • Increase partner depth and succession readiness, as the firm is currently dependent on a single 78-year-old partner, which creates key-person risk and limits valuation durability.
  • Expand leverage by building out the 20-person staff base to support the 30,000 billable hours and reduce reliance on partner-led delivery, improving scalability and margin resilience.
  • Grow higher-value advisory work by increasing consulting revenue beyond the current 30% mix, which can support stronger pricing and a more attractive earnings profile.
  • Preserve and potentially expand the audit and tax base, each at 30% of revenue, to maintain a balanced recurring service mix while cross-selling into consulting opportunities.
  • Improve earnings quality and marketability by sustaining the 50% EBOC margin through tighter utilization and staffing efficiency as the firm scales.
Threats
  • The firm is highly dependent on a single partner, with 1 partner and revenue per partner of $3.0M, creating key-person continuity and transition risk if that individual reduces involvement or exits.
  • Partner age is 78, which materially heightens succession and retention risk given the absence of additional partners to absorb leadership, client, and technical responsibilities.
  • The practice appears operationally lean at 20 staff supporting 30,000 billable hours, which can constrain capacity, increase workload concentration, and make service delivery more vulnerable to turnover.
  • Revenue is evenly split across audit, tax, and consulting at 30% each, which limits diversification benefits and means performance in any one service line can materially affect overall results.
  • EBOC is 50% of gross revenue, indicating a meaningful cost structure that may leave profitability sensitive to staffing, compensation, or utilization pressure.
Enhance Profitability

May drive premium valuation, strong cash flow, and high investor demand while supporting scalable growth and resilience.

41.67% EBITDA margin
Operational Efficiency

You are doing a great job on leverage, continue to look for opportunities to push work down to the appropriate levels, and remember that leverage is your biggest pathway to high levels of profitability

Leverage ratio 20:1
Revenue Acceleration

Growing revenue above $5M increases base multiples from 4-5x to 5.5-7.5x, potentially adding 30-50% to firm value.

Risk Mitigation

Adding even one partner can eliminate the -1.0 to -1.5 multiple penalty, potentially increasing firm value by 25-40%.
Reducing average partner age below 60 or having a clear succession plan can add 0.5-1.0x to your multiple, increasing value by 15-25%.

[-1.0, -1.5]

This preliminary valuation range is for discussion purposes only, based on unverified information, and is highly sensitive to assumptions. It does not constitute a formal valuation or transaction guidance and should not be relied upon by any party for decision-making purposes.